The intention of the author is to show the State Budget over the last twenty years, observing its expenses which will be compared with some economic indicators such as gross domestic product. Among many other possible categories of budgetary expenses, this time we will focus on functional classification one that includes expenses for social welfare, education, health, defence and interests, just to mention some.
Considering Croatia's specific geopolitical background in a sense of a post-war country in transition trying to embrace and implement the principles of a market economy, the attention will be turned to certain factors that had and still have big impact both on economic indicators and the State Budget, for example domestic and foreign state policies and its effects on domestic economy. The goal of this paper is to interpret certain expenses and expenditures in correlation with economic indicators.